When to re-finance?

[HarleyMom]

Hi, I've been a long-time lurker on these boards and have gotten some valuable advice.

Three years ago, all of my scores were in the 500's/low 600's due to many credit cards/high utilization.  Through much persistance and work, I've gotten all of my cc's paid off (over $23k in debt).  In July of this year, i went through a divorce, at which time I purchased a home and obtained my first mortgage all on my own. When I got my 30 year fixed rate mortgage my interest rate was 4.625%, which was high at the time.  I have not closed any of the credit cards, but only use my AMEX and PIF every month on the due date.  I also have a student loan that I'm paying on every month.  Other than the mortgage and student loan, i have no debt.  I've checked this morning and my EX score is 735 (yay!!).  My question is this - what else can i do to boost my scores?  At some point, assuming mortgage interest rates come back down, I'd like to be able to re-fi with a better rate.

Thanks for your help!

[pizzadude]

Can you share any of the FICO scoring details from your report?    I'm guessing that you might be able to tweak your utilization a bit to help boost your score.

[HarleyMom]

What details?

Real estate loan balance - $82759.00

22 Revolving credit cards - balance of $818 showing, which is my AMEX

1 Installment account, which is my SL, balance of $59053.

No collections showing

EX-732/EQ-732/TU-736

[HarleyMom]

I should add total available credit on all credit cards is $27175.00/some department store/a couple of VISA's and the AMEX which has no preset limit.

[pizzadude]

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@HarleyMom wrote:

What details?

Real estate loan balance - $82759.00

22 Revolving credit cards - balance of $818 showing, which is my AMEX

1 Installment account, which is my SL, balance of $59053.

No collections showing

EX-732/EQ-732/TU-736

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When you purchase a FICO score there should be a list of scoring reasons that comes with the report ~ i.e. factors helping / hurting your FICO score

[BrianB_The_Loan_Professor]

That is a pretty solid rate right now - obviously in the current market you have no incentive to refi - 

If they do come back down you can refinance at any time - continue to work on your scores and elimination of debt - all of that will put you in a much better position when the time comes

Good Luck

Brian

[ezdriver]

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@HarleyMom wrote:

Hi, I've been a long-time lurker on these boards and have gotten some valuable advice.

Three years ago, all of my scores were in the 500's/low 600's due to many credit cards/high utilization.  Through much persistance and work, I've gotten all of my cc's paid off (over $23k in debt).  In July of this year, i went through a divorce, at which time I purchased a home and obtained my first mortgage all on my own. When I got my 30 year fixed rate mortgage my interest rate was 4.625%, which was high at the time.  I have not closed any of the credit cards, but only use my AMEX and PIF every month on the due date.  I also have a student loan that I'm paying on every month.  Other than the mortgage and student loan, i have no debt.  I've checked this morning and my EX score is 735 (yay!!).  My question is this - what else can i do to boost my scores?  At some point, assuming mortgage interest rates come back down, I'd like to be able to re-fi with a better rate.

Thanks for your help!

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First off, rates on refinancing are higher than on purchasing. You actually have a pretty good rate right now. The guidance I give to folks on timing of refinancing is when the cost of refinancing will be recouped in less than 5 years and you plan to stay in the house much longer than that.